Why Seattle Isn't Producing the Next Amazon

This article dives into the tech scene in Seattle, exploring why the city, despite being home to companies like Amazon, has not produced many viral consumer internet companies. The author, Andrew Chen, a venture capitalist, shares his personal experience and observations about the unique characteristics of the Seattle tech ecosystem.

• While Seattle boasts a thriving tech ecosystem and successful companies like Amazon, the author questions the city's ability to produce the next world-changing consumer internet company.
• Chen’s primary focus is on the lack of viral, consumer-driven companies emerging from Seattle, unlike the Bay Area, which produced YouTube, Facebook, and Google.
• The article explores the differences in the types of companies being built in Seattle and the Bay Area, and how these differences might impact the overall innovation landscape.

The Question That Got Me To Leave Seattle

The author's experience in Seattle spans his childhood and early career, during which he witnessed the city's transformation into a tech hub. However, he eventually left Seattle in 2006, prompted by a question about the city's ability to produce a consumer internet company that could rival the success of Amazon.

• The article highlights the author's personal reflection on Seattle's tech scene, leading to his decision to leave the city.
• Chen explores the question of whether Seattle's focus on commerce and retail, exemplified by companies like Amazon, Costco, and Starbucks, hinders its potential to produce mass-audience consumer internet companies.

Different Kinds of Companies – Commerce versus Community

The author suggests that Seattle's strong history in retail and commerce has shaped the types of companies being built there. He observes a prevalence of transactionally-focused businesses, rather than consumer-driven, community-building companies. This, according to him, might be a reason for the city's relative lack of viral consumer internet companies.

• Chen argues that Seattle's companies tend to be more focused on specific product sales and transactions, targeting specific demographics or needs, rather than broader consumer audiences.
• He contrasts this with the Bay Area's focus on building platforms and services that cater to a broader user base, aiming for viral growth and widespread adoption.
• This distinction is evident in the types of companies thriving in each location: Seattle with companies like Amazon and Costco, focused on commerce and retail, while the Bay Area boasts platforms like Facebook, YouTube, and Twitter, focused on community building and user engagement.

Different Types of Expertise – SEO Versus Viral/Social

Chen also delves into the skills and expertise prevalent in the Seattle tech ecosystem. He observes a strong emphasis on search engine optimization (SEO) among Seattle startups, driven by the nature of their businesses.

• The author suggests that the SEO focus in Seattle arises from the city's reliance on transactional businesses that primarily rely on search engines like Google for traffic.
• He argues that this focus on SEO may inadvertently limit the development of skills and expertise in viral marketing and community building, which are crucial for building mass-audience consumer internet companies.

Social Gaming and Social Networks

The article further explores the contrasting strengths of Seattle and the Bay Area. While Seattle excels in commerce and retail, the Bay Area thrives in areas like social gaming and social networking. Chen attributes this difference to the varied skillsets and expertise prevalent in each location.

• The author explains that the Bay Area's focus on social gaming and social networking is driven by a stronger understanding and application of viral marketing and community building.
• He emphasizes that these skills are crucial for creating mass-audience consumer internet companies, and the Bay Area's success in this realm is a result of its expertise in this area.

Comments and Conclusion

The author concludes that while Seattle is a thriving tech hub, its focus on commerce and retail may hinder its ability to produce viral consumer internet companies. He argues that the city's expertise in SEO and its approach to building businesses may not be conducive to creating the kind of platforms that dominate the social internet landscape.

• The article suggests that the Bay Area, with its emphasis on viral marketing, social networking, and community building, may offer a more favorable environment for fostering the next generation of consumer internet companies.
• While recognizing Seattle's strengths in commerce and retail, the author concludes that the city's specialization might make it less likely to produce the next Amazon or Facebook.